Hynix says rescue package deal completed

Hynix Semiconductor said Wednesday that an $8 billion creditor rescue package had been completed, although it gave no details of the agreement.

Reports from Seoul said that the largest domestic creditor bank, Korean Exchange Bank, had agreed to a package providing$770 million in new loans, a rollover of $4.25 billion of existing loans and $3 billion in a debt-to-equity swap. But sources disagreed widely on how many other domestic banks agreed to go along with the deal, and whether other creditor
groups, such as foreign banks and investment trusts had signed on.

The Korean Exchange Bank had demanded that creditors refusing to accept the latest bailout package should forgive up to 70% of their existing loans to Hynix. Many of the balking creditors were said to be refusing to forgive such a large amount of the Hynix debt.